Marqeta Reports Financial Results for Q4 and Full Year 2023

Published about 2 months ago

Marqeta, Inc., a global card issuing platform, has released its financial results for the fourth quarter and full fiscal year of 2023.

Key Financial Results

Marqeta reported a total processing volume (TPV) of $62 billion for the last quarter, marking a 33% year-over-year increase. The full year TPV reached $222 billion, an annual increase of 34%.

However, the company’s net revenue for Q4 was $119 million, reflecting a 42% decrease due to the Cash App contract renewal that took effect in July 2023. This renewal resulted in a 59 percentage point negative impact on growth.

The gross profit for the quarter was reported at $83 million, down 4% year-over-year, mainly due to the new pricing under the Cash App agreement. For the full fiscal year, Marqeta reported a net revenue of $676 million and a gross profit of $330 million. This represents an annual decrease of 10% and an increase of 3%, respectively.

Losses and Income

Marqeta reported a GAAP net loss of $40 million and an Adjusted EBITDA income of $3 million for the final quarter of 2023. For the full year, the company reported a GAAP net loss of $223 million and an adjusted EBITDA loss of $2 million.

2023: A Year of Transformation

2023 was a year of significant change for Marqeta, with the company enhancing its platform with new credit card program management capabilities, securing longer-term deals for a large majority of its processing volume, and improving operating efficiency.

New Business Ventures

Marqeta launched its revamped credit card platform in October 2023 and announced its first credit deals, showcasing early traction for its new offerings in various embedded finance use cases. Internet Travel Solutions will leverage Marqeta’s credit card platform to launch a multi-use commercial credit card for the mid-sized business market. Meanwhile, Affinipay plans to use Marqeta to build a flexible, customized credit offering embedded directly into its platform.

Looking Forward

The company anticipates continued growth in Fintech and exciting opportunities in embedded finance as it enters 2024.